Before you get married, it’s important to talk to your spouse about your financial situations. If you haven’t have a big discussion about money and finances, then you may want to start putting together a prenuptial agreement and take the time to disclose all of your assets and debts, so they will do the same.
A prenuptial agreement is a good way to protect yourself and your spouse against each other’s debts. With a prenuptial agreement, you can assign debts to a specific person, limiting how much the other person has to take on if you get a divorce in the future.
How can you set up a prenuptial agreement to help?
The first thing you can do is set up a prenuptial agreement that addresses property and debt division if you go through a divorce. For example, if you have a student loan and $5,000 in credit card debt before you get married, you may add these debts to the prenuptial agreement and state that they will remain yours if you decide to divorce.
Similarly, if your spouse has purchased a car and pays on that each month, you may add that to the prenuptial agreement so that you don’t end up paying on that debt if your debt is divided in the future.
Prenuptial agreements are protective for both parties
One of the nice things about a prenuptial agreement is that it is protective for both parties. Many people worry about talking to their spouses about prenuptial agreements because they can make it seem like the person asking for one doesn’t trust their spouse, but the truth is that these agreements are protective and helpful for both parties.
By showing your spouse that you just want to protect them against your current debts and vice versa, you’ll put yourself in a better position as you negotiate the terms of the agreement. Both of you may find that a prenuptial agreement is the right tool to help you go into your marriage knowing exactly how to handle your debts if you ever decide to separate and divorce in the future.